The Daily Dose: Questions For Stock Traders

How is Robinhood For Day Trading: Robinhood is a brokerage firm that aims to capitalize on the massive, untapped market of Millennial investors. As a whole, the Robinhood team believes that the markets should be accessible to everyone, and they "put their money where their mouth is" by not requiring…

A Catalyst is an Underlying Story, Upcoming Event, or Some Other Reason For a Stock to Move: When it comes to researching potential trades and investments, individuals typically focus on at least one of three categories - technical analysis, fundamental analysis, and catalysts. Short-term traders tend to emphasize technical analysis and…

A Handful of Small Cap Stocks Have Been Chosen to Trade in $0.05 (Nickel) Increments: To many small-cap traders' dismay, the SEC 5-Cent Tick Program was launched in October, 2016. Instead of the typical $0.01 (penny) increments for the bid and ask, a handful of stocks will now only trade in $0.05 (nickel) increments.…

A Typical Fibonacci Retracement Play: Fibonacci Retracement offers potential support and resistance levels for technical traders. This tool is popular amongst short-term traders as they attempt to pinpoint trend reversals. The Fibonacci sequence of numbers was identified in the thirteenth century by mathematician, Leonardo Fibonacci. A typical trade based on this…

Why Portfolio Allocation is So Important in Both Trading and Investing: Portfolio allocation refers to the percentage of your portfolio that is being utilized for each individual trade or investment. Allocation is critical to trading success because it helps manage risk. For example, if you have a $5,000 portfolio and a…

The Importance of GDP to Economists and Investors: Gross Domestic Product (GDP) is one of the primary indicators used to gauge the health of a country's economy. To put it simply, GDP measures the overall size of the economy. It equals the total dollar value of all goods and services…

Biotech Terminology - Complete Response Letter (CRL): A Complete Response Letter (CRL) lets the drug sponsor know that their New Drug Application (NDA) has been reviewed and cannot be accepted in its present form. The letter cites specific deficiencies and outlines recommended actions for getting the application prepared for approval. Complete…

The #1 Reason Stocks Move → Sentiment. Stocks move for a reason. It all depends on supply and demand. If there's more supply than demand, then the stock price will fall. Conversely, if there's more demand than supply, then the stock price will rise. But what causes the amount of supply…

How to Set Meaningful Trading Goals: The problem with most rookie traders is that the one and only goal in their minds is to "get rich". Fair enough, but what does that even mean? It's much too generic. "Rich" to one person can mean something completely different to another. Are…

Bill Ackman Sells Valeant (VRX) Stake For $4 Billion Loss: As you may or may not know, Bill Ackman is the founder and CEO of American hedge fund management company, Pershing Square Capital Management. Back in 2015, Ackman purchased roughly 27 million shares of Canadian drugmaker stock, Valiant Pharmaceuticals International, Inc. (VRX),…

#1 Focus → EDUCATION: It's in everyone's nature to chase a quick buck and find the fastest path to gains, but jumping into the stock market uneducated and unprepared will most likely result in the opposite - losses. Just like any other undertaking worth your time and effort, it takes…

How to Trade Penny Stocks: Fundamentals play a small role in trading Penny Stocks, but for the most part - they're unknown. Stocks that trade on OTC and pink sheets don't have the same SEC reporting requirements as those trading on major exchanges (NASDAQ, NYSE, AMEX, etc.), so these companies…